Following the latest export trade done by two Iranian steelmakers, ex-Iran slab prices appear to have been settled in quite a wide range, depending on the destination the supplier is targeting and its ability to sell.
Specifically, one major Iranian steelmaker has managed to sell a 20,000-30,000 mt cargo of steel slabs at $850/mt FOB, which translates to the price initially targeted by the producer. Such a high level is explained by the destination the producer has succeeded in selling to, which has much higher prices compared to other regions, with the material in the deal in question to be shipped to a European re-roller. “Only a European mill can buy at such a price. But not all Iranian companies can afford to supply there,” an Iranian trader commented. The freight rate from Iran to the EU is estimated at $100-120/mt. Last week, China sold large tonnages of steel slabs to Europe at $1,030/mt CFR, as SteelOrbis reported.
Meanwhile, another major Iranian steel exporter has booked 40,000 mt of slab to Asia at $747/mt FOB, with freight estimated at around $75-80/mt. Even though the destination has not been confirmed by the time of publication, the material may be shipped to Indonesia, according to a few reliable sources. At the end of last week, the SteelOrbis reference price for slabs in Asia stood at $880-930/mt CFR.